Atlas bonds have a face value of $1,000,mature in 4 years,pay interest semiannually,and have a coupon rate of 4.5 percent.The next interest payment will be paid 2 months from today.What is the clean price of this bond if the market rate of return is 5.1 percent?

Question

Quizplus · Accepted Answer

Bond value = [(0.045 × $1,000)/2] × ({1 - 1/[1 + (0.051/2)]^4×2}/(0.051/2))+ {$1,000/[1 + (0.051/2)]^4×2} = $978.54 11ea5bb7_de34_1769_8724_7dfa34525782_TB1005_00 The clean price excludes any accrued interest.

Atlas Bonds Have a Face Value of $1,000,mature in 4